BitcoinGrowthFund, a startup fund for blockchain companies, has raised $2.5 million as part of its initial coin offering (ICO). An ICO is similar to an initial public offering (IPO), but investors get virtual coins or tokens instead of a share in a company or fund. The company launched the ICO on April 27 and saw $1.6 million investment in the fund within 24 hours from retail investors.
BitcoinGrowthFund is a venture capital fund where small investors invest into the company by buying tokens called MCAPs and the funds are used to mine various cryptocurrencies like Bitcoin, DASH, Ethereum, Monero, Litecoin, Z-cash, and others. A part of the fund will also be invested in other blockchain projects. MCAP owners will be paid dividends monthly based on returns from investments in the currencies. Token owners can also trade and exchange these token amongst themselves and other users at any time.
BitcoinGrowthFund is also looking to disrupt the existing crowd-funding platforms and other means of raising seed capital for small startups. It invests collective capital in startups operating in fields such as blockchain, Internet of Things (IoT), loyalty programs, and other innovative technologies.
Its mining and ICO fund has $2.74 million and its loyalty and new technologies fund has raised around $726,000.
Parliamentary committee on cryptocurrencies
Last month, the finance ministry said that it would constitute a committee to submit its views on virtual currencies. The committee will look into:
– the present status of Virtual Currencies both in India and in the rest of the world;
– examine the existing global regulatory and legal structures governing Virtual Currencies;
– suggest measures for dealing with such Virtual Currencies including issues relating to consumer protection, money laundering, etc.
The committee is chaired by a Special Secretary (Economic Affairs) and will have representatives from the Department of Economic Affairs, the Department of Financial Services, the Department of Revenue (CBDT), the Ministry of Home Affairs, the Ministry of Electronics and Information Technology, the Reserve Bank of India (RBI), NITI Aayog and the State Bank of India.
Meanwhile, the RBI has not given any license or authorization to any entity to operate such schemes or deal with Bitcoin or any virtual currency. It said that any user, holder, investor, or trader dealing with cryptocurrencies would be doing so at their own risk.